Apple Stock News: Weak iPhone 8 Demand While iPhone X Steals the Spotlight
September 26, 2017
Apple Stock News
For the latest Apple Stock News, AAPL closed at $151.89 per share on September 22nd, 2017. Its share price decreased 0.98% from its previous close on September 21, 2017, when it closed at $153.39 per share.
There has been some concern for initial sales of the iPhone 8 and 8 Plus since the release. Most reports tell of subpar demand due to the lack of new and exciting features. Customers of the iPhone 8 just seem to be upgrading their devices since their current handset is too far behind technologically. There is no strong enthusiasm for the product.
However, this enthusiasm might just be reserved for the iPhone X which is the most superior handset that Apple offers. In contrast to the iPhone 8, it has an OLED screen, facial recognition for secure log-in, and a fresh design. Many consumers will likely wait to buy the X rather than purchase the iPhone 8 or 8 Plus which is more of the same. The iPhone X goes on sale November 3rd while the iPhone 8 devices were just released on September 22nd.
The day before the special launch of the iPhone 8 handsets on September 12th, the market value of AAPL was $835B. By market’s close on September 22nd, the market value was $782B. A loss of over $50B in market capitalization. According to many analysts, this pullback could be a smart buying opportunity. Since it’s likely that consumers are waiting to purchase the iPhone X at the expense of the iPhone 8, it could benefit AAPL in the long run because the iPhone X is more expensive and carries a higher profit margin. That being said, there are whispers that Apple won’t be able to satisfy demand for the iPhone X until 2018.
In Other News
In other news, the new Apple Watch Series 3, which launched the same day as the iPhone 8 devices, has been a surprise hit. It differs from previous models in that it comes with cellular connectivity. It doesn’t need to be near an iPhone to be fully functional. As opposed to the iPhone 8, many stores actually sold out of their Apple Watch products. Anecdotal accounts even show that half of consumers in line are waiting for this product.
Additionally, Apple announced that starting September 25th, the default web search in Siri and Spotlight will switch from Bing to Google. It has been estimated that Google will pay Apple approximately $3B to be the default search engine on the iPhones and iPads.
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